Being involved in any form of court proceedings can be:
- Time consuming
- Risky (outcomes are sometimes difficult to predict)
But many court proceedings can be avoided if businesses adopt a preventative rather than reactive approach. In adopting a preventative approach, a business must identify what are the key risks it faces and how best it can manage those risks.
Key risks for most business will include contracting with other parties. By answering the following three questions, you will identify whether the approach your business has to entering contracts is preventative or reactive.
The three questions
- Do you have a formal system in place which regulates:
- Who can enter into contracts?
- What type of contracts?
- The value of contracts?
- Does your formal system review before you enter into contracts, the consequences to your business of:
- Non-performance of contracts?
- Breach of contracts?
- Do you involve lawyers in important contracts before you enter them?
If the answer to any of the above questions is ‘no’, you have a reactive approach and should consider adopting a preventative approach to avoid the expense, time and risk of being involved in court proceedings. For more information, email email@example.com.